Report: State projected to lose $5.3B under GOP health bill

Montana’s Medicaid program could lose $5.3 billion in federal dollars if the U.S. Senate’s most recent health-reform bill becomes a reality, according to a new report.

The report, released Tuesday by Manatt Health and commissioned by the Montana Healthcare Foundation, projects that loss of funding between 2020 and 2026.

Deborah Bachrach, partner and co-author of the analysis, said it also estimates more than 75,000 adults enrolled through the recent Medicaid expansion could lose coverage as early as 2021.

“This would have devastating implications for children, low-income families, elderly and disabled individuals, and the providers who serve them,” Bachrach said.

The loss in funding represents more than a third of the state’s current federal Medicaid funding — which is a stepper cut than the U.S. House-passed version of bill.

Medicaid represents 38 percent of federal funds coming into Montana.

Like the House-passed version of health reform, the Senate’s bill includes capped funding for children, disabled, and adult members of Medicaid, and the elimination of Medicaid expansion funding.

Montana Healthcare Foundation Chief Executive Officer Aaron Wernham said he saw no health benefits of these proposed changes.

“Like the House bill, it appears that the Senate’s bill would weaken the state’s health-care system and threaten our ability to care for our communities,” Wernham said.

The report concluded that Montana would need to respond to the federal cuts by curtailing spending through cutting eligibility, reducing reimbursement rates, eliminating benefits, or otherwise reducing spending for those who remain in coverage.

This week, Senate Republican leadership announced it would delay a vote on the health-reform bill, which 13 Republican senators drafted behind closed doors.

In a Facebook live event on Tuesday night, Montana’s Democratic Sen. Jon Tester talked for roughly an hour about how he felt the GOP plan would hurt Montanans.

Tester said while looking at Montana’s possible loss in federal dollars, “I don’t think the state has the resources to backfill those dollars, I just don’t.”

Republican Sen. Steve Daines was scheduled to host a tele-town hall Wednesday night. Daines has said he won’t take a position on the Republican bill until after talking to voters.